PA Media/dpa
London
The UK economy unexpectedly contracted in October, marking two months in a row of negative growth for the first time since the pandemic, new figures show.
Chancellor Rachel Reeves said she was “disappointed” by the data after a weak month for pubs and restaurants dragged on growth.
The Office for National Statistics (ONS) said gross domestic product (GDP) contracted 0.1% in October.
Most economists had been expecting GDP to rise by 0.1% during the month.
The latest figures from the ONS follow a 0.1% estimated fall in September - meaning it is the first time the economy has contracted for two consecutive months since March and April 2020, during the onset of the Covid-19 pandemic.
It marks a fractional shift in the outlook for the economy after it eked out 0.1% growth over the latest quarter, between July and September.
The ONS said the services sector recorded no growth in October after also stalling in September.
Liz McKeown, the ONS’s director of economic statistics, said: “The economy contracted slightly in October.
“Oil and gas extraction, pubs and restaurants and retail all had weak months, partially offset by growth in telecoms, logistics, and legal firms.”
